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I agree that corporations departing can cause (or be caused by) a bad economy. But neither of your examples are part of the chain of events you described:

Investment -> growth -> higher wages -> low-wage seeking investment leaving -> decline

I fully agree with all steps in this chain besides the last.

As you say, Nicaragua was a natural disaster and Venezuela was an unnatural disaster. I agree that both of these things can cause a nation to decline, and can also cause foreign corporations to flee the country. But I wasn't asking whether disasters can harm a country and also chase away foreign investment.




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